Bank of Industry Loan – Get Unto N5 Million Loan
The Bank of Industry Limited (BOI) is Nigeria’s oldest and most successful development financing institution (DFI). The bank aims to facilitate the transformation of Nigeria’s industrial sector by providing financial and advisory support for the establishment of large, medium, and small projects/ enterprises, and the expansion, diversification, rehabilitation, and modernization of existing enterprises.
Bank Of Industry Loan
The Bank of Industry is tasked with providing financial assistance for large, small, and medium-scale businesses in Nigeria through loans. Hence, the BOI has over the years partnered with various private and public bodies in Nigeria to distribute Loans precisely for this purpose.
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Eligible Criteria for Bank of Industry Loan
BOI in line with its mission offers loans to any Nigerian with a legitimate and verifiable business. However, they tend to give more priority to businesses engaged in manufacturing and processing. Hence most loans announced by the BOI are targeted at sectors such as processing agricultural materials, information technology, oil and gas, creative industry, and mining of solid minerals. It is very important to note that only registered businesses can access BOI loans.
Loan Amount
Based on the huge money required to run the industries mentioned above, BOI loans usually start from N5 million. However, the Bank of Industry sometimes provides smaller loans in partnership with SMEDAN or other MSME-friendly organizations through its matching funds which in most cases are distributed through Microfinance banks. A good example of this marching fund is the Enugu BOI matching fund and the recent Rivers State BOI Matching Fund.
BOI Loan Interest Rate
The interest rate of a Bank of Industry loan is usually between a single digit of 9% to a double-digit of 12 to 15% per annum. The interest rate generally varies based on the type of business and the moratorium period.
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Accessing BOI Loan As An MSME
If you are a micro, small, or medium-scale enterprise owner and you wish to apply for a Bank of Industry loan, you must make sure your business is duly registered and you are up to date on your Taxes also you need collateral to apply for a direct loan. However, if you wish to apply for this loan without having to meet 100% of these requirements, your best option is to apply for any of the BOI matching funds available in your state of residence or through a partner Microfinance bank.
Other Ways to Access Bank Of Industry Loan
Outside the direct application as an individual business owner in the eligible fields mentioned earlier, you can access the BOI loan by being a member of a registered cooperate society. This society with the approval of its directors can apply for a loan of up to 10 Million Naira and then distribute the loan to its members who will use it for their business and return the money within the agreed timeframe.
How to Apply for BOI Loan
If you wish to apply for a BOI loan, you can do so by visiting their office in your state to get all requirements or you can also read the requirements online and download the loan application form. You can check all valid information on their official page at https://www.boi.ng/
